This report covers Wake County, NC. One of the fastest growing counties in the United States and home to 12 municipalities including Raleigh, Cary, Wake Forest and Apex.
Consumer Impact
August, 2022 housing market reinforced that market is heading is towards what many consider normal. It is not there yet, over 315 homes sold for at least $20,000.00 over list price in August, 20 of those sold for $100,000.00+ over list price. On the other side of the curve 170 homes sold for $20,000.00+ below asking price. And for the first time in 30 months over 300 homes were pulled from the market not selling, meaning seller time, effort and convenience were wasted.
To put this in perspective the premium price gap between a third of the homes sold was at LEAST $40,000.00. This is a new dynamic in our market, there has never been a more important time to hire a great agent, not focused on sales over the last 24 months, what was their success and experience prior to the pandemic. Poorly curated listings are sitting on the market watching value erode. The following graph shows the impact on sales prices by days on market.
Existing home sales were up slightly from July to 1726 units and an average sales price of $527,872.00 down from $547,088.00 in July, or from $239.04 a square foot to $233.71.
The Biggest reason for the price dip is the lack of exuberance among buyers. The following shows price premiums paid in Wake County:
May buyers paid an average of $32,573.00 over list price
June buyers paid an average of $23,490.00 over list price
July buyers paid an average of $11,363.00 over list price
August buyers paid an average of $3,022.00 over list price
This decline in premiums paid plus seasonal price changes is inline with the market. It appear fragile because of post epidemic exuberance. If we remove the impact of pent up demand and lifestyle changes, are on par.
Prices are up 15% from August of 2021, an increase of $69,172 for the average home.
YoY the market was down 345 existing homes (up 21 new constructions homes) in August compared to August 2021. For the first time in half a decade the dollar volume of sales declined for the third straight month putting a strain on brokerage revenue.
Inventory is up to a 1.2 month supply.
Showings were consistent 21,758 in August vs. 22,128 in July.
Days on Market was up to 9 in August, a combination of slowing market and now counting days on "coming soon" listings.
September Outlook: Existing Sales down to 1125 and average sales price +/- $506,000.00 total volume down for 4th straight month.